Nigerian blender and distributor Ardova Plc reported an 83% drop in net profit and a 10% increase in sales revenue for its lubricants and greases segment for the quarter ending Sept. 30, according to the company’s financial statement.
Net profit for the lubricants and greases segment was ₦61.2 million (U.S. $138,000) for the third quarter, down from ₦368.5 million in the same period last year.
Segment operating profit decreased 6% to from ₦320.2 million ₦210.1 million over the same period.
Quarterly sales for the segment were ₦7.9 billion, an increase from ₦7.2 billion.
The company makes and distributes lubricants and greases from its blending plant at its Apapa terminal in Lagos. Ardova distributes Shell lubricants branded products to Nigeria’s automotive and industrial sectors.
In 2019, Ignite Investments and Commodities Ltd. acquired a 74.02% equity stake in Forte Oil Plc’s downstream operations. Later that year, Forte changed its name to Ardova Plc. The African Development Bank Group said in its Africa Industrialization Index 2022 released Nov. 24 that the Nigerian government is using tariff policy to encourage the revival of the country’s automotive industry, which may have potential to boost demand for lubes used in manufacturing and assembly. This is by raising tariffs on fully assembled vehicles and lowering tariffs on component parts. The Nigerian government anticipates the auto assembly industry could create as many as 70,000 direct jobs and another 200,000 indirect jobs.